Defense Budget for FY2002: An Overview of Bush Administration Plans and Key Issues for Congress

Publication Date: May 2001

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

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Abstract:

Details of Bush Administration plans for the defense budget have been on hold for several months as senior officials have undertaken a reassessment of defense policy known as the "National Defense Review." The initial Bush budget outline, A Blueprint for New Beginnings, released on February 28, and the Administration's official FY2002 budget request, released on April 9, include $325 billion in new budget authority for national defense in FY2002, but that total remains subject to change as the defense review proceeds. Moreover, official Administration defense budget projections beyond FY2002 simply reflect projected growth with inflation in overall annual funding for national defense from FY2003 through FY2006 rather than the results of any policy assessment.

Currently, the Administration plans to begin discussing the major conclusions of its defense review late in May, and to provide additional budget details, at least on its FY2002 defense plans, some time in June. Even then, however, Secretary of Defense Rumsfeld has said that the reassessment process will constitute a "rolling review," and that further adjustments to the defense plan will be announced as they are decided. It also remains unclear when plans for FY2003 and beyond will be determined and what information about those plans will be provided publicly.

Though Congress has expressed some frustration with this process, it has also accommodated the uncertainty by providing room for an unspecified increase in defense spending in the FY2002 budget and in defense totals through FY2011. The conference agreement on the FY2002 congressional budget resolution (H.Con.Res. 83), establishes a "strategic reserve" in the House that may include extra funds for defense, and a specific defense "reserve fund" in the Senate. These reserve funds permit the chairman of the budget committee in each chamber to increase allocations of funds to the defense authorization and appropriations committees to accommodate a higher defense request and to increased funding to the extent provided in annual defense authorization and appropriations bills.

Meanwhile, virtually since the beginning of the year, there has been a debate in Congress about the need for supplemental appropriations for defense for FY2001. For its part, the White House initially set no timetable for submitting a FY2001 defense supplemental request and has provided little indication of the likely size of any request. The conference agreement on the FY2002 congressional budget resolution (H.Con.Res. 83) specifically sets aside $6.5 billion for FY2001 defense supplemental appropriations, but additional funding may be provided as emergency appropriations.

Early congressional debate about the FY2002 defense budget - and future budget trends - has focused heavily on two ongoing issues - the extent of "shortfalls" in planned funding for major weapons programs and the meaning of a "transformation" of U.S. defense capabilities.